Question: What should an audit team do when it discovers that fraud risk factors are present on an audit engagement? a . Retract from the client
What should an audit team do when it discovers that fraud risk factors are present on an audit engagement?
a
Retract from the client and inform regulatory bodies.
b
Modify procedures to actively search for the existence of fraud.
c
Reduce the amount of evidence required and resort to management inquiry.
d
Turn the audit over to forensic accountants.
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